Choosing The Right Metrics For Your Customer Service Operations

Measuring the success of your customer service by using a single metric is impossible. It’s like flying a plane by just looking at your speed without taking the altitude into account. You need to measure a set of competing metrics to make up a Balanced Scorecard that includes the cost of doing business and customer satisfaction. Service operations that have sales responsibilities should also track revenue generated. And in industries with strict policy requirements, like healthcare, insurance, and financial services, compliance with regulations is yet another set of metrics to track.

Choosing the right set of metrics to measure also depends on the stakeholders that use this information. For example:

  • Service managers need operational data that tracks activities, while executives want strategic KPIs that track outcomes of customer service programs.
  • Service managers need granular, real-time data on their operations, while executives need to see only a small number of KPIs on a periodic basis.  

I always think of it as a two-step process to pinpoint the right metrics for all your stakeholders:

  1. Understand the strategic objectives of your company; choose the high-level KPIs for your contact center that support your company’s objectives. These are the metrics you will report to your executives.
  2. Choose the right operational activity metrics for your contact center that map to these KPIs and which the customer service manager uses on a daily basis to manage operations. Here’s an example of this mapping:
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The Customer’s Bill of Rights: The Right to Choose How to Get Customer Service

The Customer’s Bill of Rights: The Right to Choose

Customers know what good service is and expect it from every interaction they have with a company’s customer service organization, over all the interaction channels that the company supports. More often that not, they are disappointed, and are quick to voice their disappointment. And in this world of social media, this disappointment gets amplified — which leads to brand erosion.

Let’s focus on the way customers want to interact with your customer service organization:

  • Customers expect to interact over all the channels that customer service organizations offer, including the traditional ones like phone, email, and chat, and the new social ones like Faceboook and Twitter.
  • Customers expect the same experience over all the communication channels that they use.
  • Customers expect the same information to be delivered to them over any channel.
  • Customers expect to be able to start a conversation on one channel and move it to another channel without having to start the conversation over.
  • Customers expect you to know who they are, what products they have purchased, and what prior interactions they’ve had with you.
  • Customers expect you to add value every time they interact with you.
  • Customers expect you to offer them only new products and services that make sense to them and fit with their past purchase history.
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NetSuite Announces Aggressive Plans To Move Into The Enterprise

NetSuite was kind enough to invite me to the analyst day at its SuiteWorld 2011 user conference — an event packed with product, strategy, customer, and partner information. The focus was clearly on its platform and ERP solutions. Here are my thoughts and takeaways:

  • NetSuite wants to ride the SaaS wave into the enterprise. NetSuite is the only SaaS-based ERP suite of scale. It reports that its data centers get 2.2 million unique logins and 4 billion customer requests a month. However, NetSuite wants to do better. It wants to take its well-tested and well-adopted solution in the midmarket and extend into the enterprise. The timing is right, as Forrester reports that enterprises are ready to consider SaaS-based ERP solutions. In fact, NetSuite reports that sales to enterprise customers increased 37% between 2009 and 2010.
  • NetSuite has a solution package targeted at the enterprise. NetSuite announced a new “Unlimited” package for about $1 million, which includes all modules, unlimited storage, applications, SuiteCloud customizations, subsidiaries, and unlimited users. The exact pricing is based on functionality and number of users (which starts at 500), and scales up from there. It is a package targeted to compete with traditional on-premise ERP vendors as well as SAP’s on-demand solution, Business ByDesign.
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